"The government will take all possible steps and if required, confiscate the properties of the accused persons, to recover the money," said Rajnikant Singh, the state steel and mines minister.
B K Mohanty, who has 56 hactare (ha) iron ore lease at Uliburu in Joda mineral circle, is accused of illegally raising and exporting iron ore worth Rs 1,800 crore upto 2009, when the irregularities were first noticed by the government authorities.
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The miner excavated huge amount of iron ore from nearby forest area by shifting the boundary pillars.
Interestingly, Mohanty had transferred the ownership of the lease to one, Deepak Gupta, the managing director of Deepak Steel and Power, via power of attorney. The Joda deputy director of mines has asked Gupta to submit the details on illegal mining and selling of minerals worth Rs 1,776 crore.
Meanwhile, the lease validity of the mine has already expired and the state mines director has decided not to renew the lease document.
The state government has also informed the matter to the Shah Commission, which is investigating into illegal mining operations in the state, Singh added.
"The state government has always provided all information sought by the Shah Commission. We have already informed the Commission about the latest developments," he said.
The Keonjhar district administration, which has been ordered by the state revenue department to submit a report on the matter within three days, completed its first day of investigation today.
"We are probing all aspect of the matter. We have taken measurement of the original lease area and will match it with forest area map to find out the irregularities," said an official of Keonjhar district collectorate.
The state Principle Chief Conservator of Forest (PCCF) has also ordered a separate inquiry into the matter by the forest department.